Creditriskmonitor to license counterparty quality scores from institutional risk analytics

VALLEY COTTAGE, N.Y. and TORRANCE, Calif., May 1, 2011 /PRNewswire/ — CreditRiskMonitor (Pink Sheets: CRMZ) and Institutional Risk Analytics ("IRA") announced today a licensing agreement which will provide all CreditRiskMonitor subscribers accessibility new IRA Counterparty Quality Scores ("CQ Scores").  The CQ Scores are made to give depositors along with other bank counterparties warning of possible failure.  

The CQ Scores are members of IRA’s Bank Monitor ratings and analytics system and were particularly designed to complement corporate ratings tools for example CRMZ’s proven FRISK® scores.  "Our bank stress letter ratings are equipped for consumers," notes IRA Chief executive officer Dennis Santiago, who leads the style of IRA’s ratings and analytics products.  "We developed the CQ Scores using the team at CRMZ particularly to meet the requirements of corporate treasurers, underwriters and risk managers who desire to make decisions on commercial credit."

CreditRiskMonitor subscribers will get access to CQ Scores for around 7,000 FDIC insured banks and 5,000 bank holding companies.  The inclusion of the brand new CQ Scores towards the over 25,000 FRISK® score ratings already on public companies world-wide represents a substantial rise in predictive-score coverage on the CreditRiskMonitor service.

"The CQ Score is definitely an exciting accessory for our credit analysis service, for subscribers who wish to rapidly evaluate and monitor their funds management and letter-of-credit banking relationships," stated Jerry Flum, Chief executive officer of CreditRiskMonitor.  "We did an entire research overview of the CQ Score more than a whole business cycle, and therefore are very impressed with being able to identify individuals banks that appears to be ‘resolved’ by banking regulators.  The CQ Score is an excellent initial step inside a review process for bank counterparties.  Plus, as continues to be our practice, we’ve added this exciting new capacity to the service at no additional charge to subscribers.

The CQ Scores cover almost all public and independently held banks, savings and loan institutions, and bank holding companies within the U.S.  The CQ Scores originate from an exclusive model created by IRA to position banks based on the probability of failure, being ‘resolved’ through the bank regulators.  Data utilized in the model are derived entirely from objective fundamental data that banks are needed to file for using the FDIC.

"We feel the U.S. banking market is now inside a new duration of crisis," notes IRA co-founder and Md Christopher Whalen, who lately issued a study downgrading the outlook on operating recent results for the U.S. banking sector.  "We predict foreclosures to peak this year, along with a ongoing wave of bank failures during 2011 and 2012."  

Whalen, who runs IRA’s advisory practice and it is author from the book "Inflated: How Money and Debt Built the American Dream" adds, "Some banks have recapitalized effectively, but many haven’t.  Smart CFOs and Treasurers could keep a careful eye on their own banking counterparties, especially this season and then, and carrying this out via CreditRiskMonitor is a superb value."

Due to its unique method of collecting and analyzing quarterly FDIC bank data, IRA is effective in reducing the standard 60-day+ delay and generate a CQ Score less than thirty days following the quarter finish.  The CQ Score relies on a simple ratings scale from 1 to eight, using the greatest number to be the top (least dangerous) rating score.  

"More lately," notes Flum, "we checked out every bank failure previously 12 several weeks, so we saw that almost all of the unsuccessful banks had low CQ Scores not less than two quarters prior to being ‘resolved.’ Simultaneously, we discovered that CQ Scores within the dangerous 1 to 4 range are unusual, proven for just a part of banks.  We feel certain that the CQ Scores will be an excellent value for CRMZ customers.  As the U.S. banking system works its way with the next few years of necessary consolidation and renewal, you want to help our users maximize business possibilities and steer clear of risk."

About CreditRiskMonitor

CreditRiskMonitor ( is definitely an Internet-based writer of monetary information, made to save your time for busy corporate credit professionals that competes with Dun & Bradstreet, Equifax and Experian.

About Institutional Risk Analytics

Institutional Risk Analytics ( is really a provider of bank ratings, custom analytics and talking to services for credit officials, auditors, corporate lenders, regulators, investment managers along with other decision makers.  IRA publishes standardized benchmarks, ratings and soundness metrics covering both U.S. financial institutions and company obligors.  

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Counterparty risk